Healthcare giant Johnson & Johnson (JNJ) has hailed the success of its experimental psoriasis drug in a late-stage study.
Once-a-Day Pill
The group, whose shares failed to respond to the news dropping 0.1%, said the drug had met its main goal of helping patients achieve clear or almost clear skin.
Psoriasis is a skin disease that causes a rash with itchy, scaly patches, most commonly on the knees, elbows, trunk and scalp. Over 125 million people are said to have the condition including more than 7.5 million adults in the United States.
JNJ said that the once-a-day pill called Icotrokinra had helped 66% of patients with scalp psoriasis and 77% with genital psoriasis. This compared to 11% and 21% success rate in patients on placebo.
J&J is developing the drug with partner Protagonist Therapeutics (PTGX) In a separate late-stage study last year, the drug showed significant skin clearance in patients with moderate-to-severe plaque psoriasis.
Stiff Competition
According to a Reuters report the drugmaker has been working on more convenient treatment options such as a pill, as its injectable psoriasis drug Stelara, which gained over $10 billion in sales last year, faces stiff competition from cheaper rivals.
J&J said last month it expects icotrokinra, to generate sales of $700 million in 2028.
BTIG analyst Julian Harrison said icotrokinra should “complement rather than disrupt” market leaders, including J&J’s Tremfya and AbbVie’s (ABBV) Skyrizi.
Icotrokinra is designed to block a protein, IL-23, involved in inflammatory responses and is being tested as a potential treatment for other inflammatory conditions, such as ulcerative colitis.
Is JNJ a Good Stock to Buy Now?
On TipRanks, JNJ has a Moderate Buy consensus based on 8 Buy and 7 Hold ratings. Its highest price target is $185. JNJ stock’s consensus price target is $170.77 implying an 9.78% upside.
